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    • paulrh67
    • By paulrh67 15th Jul 17, 3:12 PM
    • 3Posts
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    paulrh67
    Paying Off In-Laws Mortgage
    • #1
    • 15th Jul 17, 3:12 PM
    Paying Off In-Laws Mortgage 15th Jul 17 at 3:12 PM
    My in-laws have an endowment mortgage with a policy that will be in shortfall at the end of the mortgage term. I have some savings that I could use to pay the mortgage off. I do want to get the investment back (plus a little interest) when it comes to selling the property, either if they move to a cheaper property or when they both pass away.

    What are the implications of this arrangement (immediate tax libility, possible capital gains and inheritance taxes)? How would I go about setting up such an agreement?

    Thanks for any help.
Page 1
    • Thrugelmir
    • By Thrugelmir 15th Jul 17, 3:32 PM
    • 54,331 Posts
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    Thrugelmir
    • #2
    • 15th Jul 17, 3:32 PM
    • #2
    • 15th Jul 17, 3:32 PM
    Speak to a solicitor to get a properly worded agreement drawn up. That's covers how you enviage the arrangement working. There are many scenarios that you haven't even thought of I suspect.
    “ “Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria. The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell.” Sir John Marks Templeton
    • paulrh67
    • By paulrh67 15th Jul 17, 4:57 PM
    • 3 Posts
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    paulrh67
    • #3
    • 15th Jul 17, 4:57 PM
    • #3
    • 15th Jul 17, 4:57 PM
    Thanks. Yes, this is definitely something that requires legal documentation.

    Approx what is a solicitor likely to charge for this service?
    • amnblog
    • By amnblog 15th Jul 17, 6:34 PM
    • 9,533 Posts
    • 3,685 Thanks
    amnblog
    • #4
    • 15th Jul 17, 6:34 PM
    • #4
    • 15th Jul 17, 6:34 PM
    Presumably you won't be picking up the bill for the solicitor as well?
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • McKneff
    • By McKneff 15th Jul 17, 7:15 PM
    • 35,406 Posts
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    McKneff
    • #5
    • 15th Jul 17, 7:15 PM
    • #5
    • 15th Jul 17, 7:15 PM
    Why go to the expense of a solicitor. Its just a straightforward loan in effect.
    Just a written agreement, dated snd dated would be sufficient, surely
    No one can make you feel inferior without your consent
    • paulrh67
    • By paulrh67 16th Jul 17, 4:30 AM
    • 3 Posts
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    paulrh67
    • #6
    • 16th Jul 17, 4:30 AM
    • #6
    • 16th Jul 17, 4:30 AM
    Yes I will but that will be factored in to the eventual payback.
    • getmore4less
    • By getmore4less 16th Jul 17, 9:46 AM
    • 29,139 Posts
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    getmore4less
    • #7
    • 16th Jul 17, 9:46 AM
    • #7
    • 16th Jul 17, 9:46 AM
    Loan is the easy one(optional charge on the property).

    Needs to have payment terms so it can be enforced as a debt.
    if you want interest then that is taxed.

    if you want to have no payment you need the terms of when it is due in full(house sale, death etc.)

    if you die as it will be a debt against your estate which may not be able to be called in for some time leaving an open ended administration.
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